Exclusions: What Homeowners Insurance May Not Cover

It’s a good idea to check a homeowner insurance policy regularly, not just when a claim must be filed. Quite often, from the time a homeowner selects a policy, to the time they need coverage, many years have passed. Changes may have incurred within their home or the industry, or the homeowner may now be confused about exclusions. Although coverage varies by company and location, there are some homeowner insurance exclusions contained in almost every policy. The following list, however, is not inclusive. It’s important to check with the insurance company before entering into any agreement.

An exclusion that surprises people concerns natural disasters, such as earthquakes, hurricanes, floods and landslides. If one’s home is located in a developed area, they may have some protection, but if the home is in a high risk area, most insurance companies will not offer coverage. However, California Earthquake Authority offers some assistance, as well as the National Flood Insurance Program. It is almost impossible to get coverage for fire risks if the home is located far from a fire station or in close proximity to a forest.

Owning Pitt Bulls, Rottweilers, Wolf hybrids, Malamutes, Dobermans, German Shepherds and Huskies may result in denied coverage or more expensive coverage, especially with a dog’s history of biting. The owner will need to negotiate, such as having the animal excluded and agreeing to pay for damages incurred by the dog. Insurers will also raise rates if the homeowner has installed a spa or pool, and may threaten a loss of coverage should a trampoline be purchased. (With the high incidence of trampolines causing serious injuries and high medical bills, they present too high a risk.)

As far as the replacement of personal possessions, homeowner insurance has limits, such as $1000 for all furs, jewels and collectibles. It’s suggested that extra coverage be purchased for these items, as well as for antiques. Computers may be capped at a couple of thousand at best, or, at worst, what the machine is worth in today’s market. (But if it’s used for a home business, a computer may require supplemental insurance.)

Statistics now show that damage from water and mold is now limited or excluded totally. Sewage backup damage is also rarely covered, but riders are usually available for less than $100.

It should be no surprise that homeowners policies do not cover intentional damage by the insured or his/her family living on the premises, and damage claims by estranged spouses whose names are on the property deed or insurance policy, but living elsewhere, are usually denied.

Finally, since the purpose of homeowners insurance is to protect against unexpected loss, damage over time is usually denied coverage. This is because normal upkeep and maintenance were not done. Insurance companies have every right to deny coverage for problems that should have been remedied before reaching critical conditions. If the homeowner performs an annual check on the premises for rodents, termites, leaks, decay, cracks, etc., and attempts to remedy the situation (with proof), the insurance company may cover part of the claim costs. But, there’s a greater chance that it won’t.

Although it seems that homeowners insurance is limiting, it does protect assets; many homeowners were relieved to have had it when they needed it.